GS have raised their 3 month EUR/USD forecast from 1.10 to 1.15
- "We think the Euro may have finally turned a corner"
The note outlines positives for the euro:
- improvement in industrial activity (better German auto production numbers)
- easier financial conditions
- lower oil prices
- fiscal stimulus
- potentially hawkish new ECB president could affect outlooks for rates
- FX investor positioning quite short euro
For downside risks
- a downturn in global trade
- politics in Italy
